How It Works

Plum simplifies co-ownership with tools to help you every step of the way.

We help you through the journey

All the details you want to know

Listen to shared experiences

Your dream is affordable and within reach

We’re here to help!

Vacation Home Co-Ownership LLC & Operating Agreements

by | Jul 25, 2022

Understanding and establishing operating agreements is an important early step in co-ownership. While tenancy-in-common and joint tenancy are often used, Plum believes an LLC offers the best method for protecting the interests and needs of co-owners. An LLC’s operating agreement provides a framework to address the myriad of issues that can arise during ownership. 

The operating agreement spells out exactly how much each member has invested and what the percentage of ownership that investment entails. The robust operating agreement allows each member to plan their use of the property, and to know what their obligations are throughout the term of ownership. The groups will be able to define exactly how they will provide maintenance, upkeep and renovation to the property.  Addressing these questions at the onset of ownership allows each member to feel comfortable with their role in the LLC.

Operating agreements also define what to do when the members want to move on from property.  The agreement can define a term of ownership so that each member knows the length of their obligation.  The steps necessary for transferring ownership of each members’ share can be agreed upon prior to any situation necessitating a transfer.  If one member has a need to leave the ownership group, the rest of the owners will know exactly what to expect and can plan accordingly. 

Disputes will occur, but a comprehensive operating agreement will offer guidance on the steps necessary to get the group back to cohesion, and failing that, it will guide the group through the sale of the property.

Investing in Fractional Ownership Amidst High Interest Rates

Investing in Fractional Ownership Amidst High Interest Rates

In the current real estate landscape, high interest rates continue to raise important considerations for potential buyers eyeing fractional (co-ownership) vacation homes. One common adage in real estate, "Marry the property, date the rate," resonates strongly in this...

Everything to Know About Timeshares: Pros, Cons, and How They Work

Everything to Know About Timeshares: Pros, Cons, and How They Work

Tmeshares are a $10.5B industry in the US with over 1500 resorts offering over 200,000 units and owned by nearly 10MM US households.  Love 'em or hate 'em, timeshares are a thing.  As Plum CoOwnership is an alternative to timeshares, we get asked a lot of questions...

The 7 Deadly Sins of Fractional Ownership

The 7 Deadly Sins of Fractional Ownership

Fractional ownership is a great way to own a vacation home without the high cost and hassle of full ownership. However, it's important to avoid these seven deadly sins to ensure a successful experience: 1. Petting the Puppy Before You're Ready to Own a Dog It's...

Pin It on Pinterest

Share This